SUBSIDY CLAIMS: FG pays marketers N338.24bn in 2012.

By Clara Nwachukwu
LAGOS—In defence of claims by oil marketing and trading companies, OM&TCs that the Sovereign Debt Notes, SDNs, given to them as reimbursement for petroleum products importated are not backed by cash, the Federal Ministry of Finance said it has paid about N338.24billion as at August 22, 2012.
The Ministry in statistics made available to Vanguard, yesterday, titled: “Update on Payments to Oil Marketers Whose Claims Have Been Verified”, said that a whopping sum of N259.34billion were paid the OM&TCs as subsidy arrears for 2011, while about N78.9billion have been paid for 2012 verified claims.

YOU WIN—From left: Minister of Women Affairs, Hajia Zainab Maina; Vice President, Namadi Sambo; President Goodluck Jonathan and Minister of Finance, Mrs. Ngozi Okonjo-Iweala during the Presidential Launch of 2nd Edition of Youth Enterprise With Innovation In Nigeria (You Win), yesterday, at the State House, Abuja.

“Please note that of the total amount of N78.9 billion paid so far under this category, N34.6billion was paid on Wednesday, August 22, 2012 following a thorough process of claims verification. This is in line with the commitment of the Federal Ministry of Finance to continue the payment of marketers whose papers have been processed and cleared,” the update read in part.
It further observed that, “some claims were settled before substantive implementation of the Aig-Imoukuede Committee’s Report, which led to the suspension of payments of all 2012 claims to oil marketers under investigation for serious infractions.”

Banks are not funding importation

However, some of the marketers who spoke in confidence to Vanguard, complained that the invalidity of the SNDs has made it impossible for them to continue to import products, as “no bank is willing to finance the importation of new cargoes,” thus heightening the fears of impending fuel scarcity.
The OM&TCs told Vanguard exclusively that some of them had been carrying around the debt notes for upwards of four weeks without cash back up.
“If you have the SDN and you cannot turn it into cash, then you cannot import products because banks are not willing to finance it. So as it is two things will happen: scarcity will set in because most of the existing stocks have been exhausted, and scarcity will naturally lead to nationwide strikes,” they opined.
The development raises questions about Nigeria’s liquidity if its debit notes are no longer cashable, even as Finance Minister/Coordinator of the Economy put foreign reserves in excess of $38billion
But in a quick response to Vanguard’s inquiry, the Finance Ministry released the names of the OM&TCs, whose claims had been verified and paid accordingly.

List of marketers paid

It would be recalled that Vanguard had earlier exclusively reported that the marketers had dared the ministry to publish the names of those that have been paid. Apparently pushed to the limit in view of the claims and counter claims that have tried the subsidy hoax, the ministry is being forced to call their bluff, to state as follows:
Please note that the Federal Ministry of Finance makes payments based on submitted batches by the Petroleum Products Pricing Regulatory Agency (PPPRA).
LATEST PAYMENTS MADE BY THE FEDERAL MINISTRY OF FINANCE TO OIL MARKETERS IN 2012 AGAINST 2012 CLAIMS
NO. OF COMPANIES: 24
NO. OF CLAIMS: 43
S/NO.
NAME OF OIL MARKETER
1.ASCON OIL COMPANY LIMITED (3 Claims)
2.BODEJ INVESTMENT LIMITED (1 Claim)
3. BOVAS AND COMPANY LIMITED (2 Claims)
4.CHANNEL OIL AND PETROLEUM LIMITED (1 Claim)
5.DEE JONES PETROLEUM AND GAS LIMITED (1 Claim)
6. DOZZY OIL AND GAS LIMITED (1 Claim)
7.FIRST DEEP WATER DISCOVERY LTD (1 Claim)
8. FOLAWIYO ENERGY LIMITED (1 Claim)
9.HEYDEN PETROLEUM LIMITED (1 Claim)
10.HONEYWELL OIL & GAS LIMITED (1 Claim)
11.INTEGRATED OIL & GAS (1 Claim)
12.MASTERS ENERGY OIL AND GAS LTD (1 Claim)
13.MOBIL OIL NIGERIA NIGERIA PLC (3 Claim)
14.MRS OIL & GAS LIMITED (1 Claim)
15.NIPCO PLC (4 Claims)
16.OANDO PLC (2 Claims)
17.RAHAMANIYYA OIL & GAS (3 Claims)
18.RAIN OIL LIMITED (5 Claims)
19.SAHARA ENERGY RESOURCES LIMITED (2 Claims)
20. SHORELINK OIL AND GAS SERVICES LIMITED (2 Claims)
21. SWIFT OIL LIMITED (1 Claim)
22. TECHNO OIL LIMITED (3 Claims)
23.TOTAL NIGERIA PLC (1 Claim)
24. ZALEX ENERGY RESOURCES LIMITED (1 Claim)
Grand Total:  N78,899,342,509.65
TABLE 2:
PAYMENTS MADE BY THE FEDERAL MINISTRY  OF FINANCE TO OIL MARKETERS IN 2012 AGAINST 2011 ARREARS.
S/NO    NAME OF OIL MARKETER
1    ACORN PLC
2    AITEO ENERGY RESOURCES
3    AMG PETRO-ENERGY LIMITED
4    ANOSYKE GROUP OF COMPANIES
5    ASCON OIL COMPANY LIMITED
6    AX ENERGY LIMITED
7    A-Z PETROLEUM
8    BAYWOOD CONTINENTAL LIMITED
9    BRITANIA .U. NIGERIA LIMITED
10    CAADES OIL & GAS LIMITED
11    CAH RESOURCES ASSOCIATED LIMITED
12    CAPITAL OIL & GAS INDUSTRY LTD
13    CARNIVAL ENERGY OIL & GAS LTD
14    CEOTI LIMITED
15    CHANNEL OIL & GAS SVS
16    CONOIL PLC
17    CRUST ENERGY LIMITED
18    DEE JONES PETROLEUM & GAS LIMITED
19    DOWNSTREAM ENERGY SOURCE LTD
20    DUPORT MARINE LIMITED
21    ECO-REGEN LIMITED
22    ETERNA OIL & GAS PLC
23    EURAFIC OIL & COASTAL SERVICE  LIMITED
24    FARGO PETROLEUM & GAS LIMITED
25    FIRST DEEP WATER DISCOVERY LIMITED
26    FOLAWIYO ENERGY
27    FORTE OIL PLC
28    FRADO INTERNATIONAL LIMITED
29    FRESH SYNERGY LIMITED
30    GEACAN ENERGY LIMITED
31    HEYDEN PETROLEUM LIMITED
32    HONEYWELL OIL & GAS LIMITED
33    IBAFON OIL LIMITED
34    INTEGRATED OIL & GAS
35    KNIGHT BRIDGE OIL
36    LLYODS ENERGY LIMITED
37    LOTTOJ OIL & GAS LIMITED
38    MASTERS ENERGY OIL & GAS LIMITED
39    MATRIX ENERGY LIMITED
40    MOB INTEGRATED SERVICES
41    MOBIL OIL NIGERIA NIGERIA PLC
42    MOMATS OIL & GAS LIMITED
43    MRS OIL & GAS CO. LIMITED
44    MRS OIL NIGERIA PLC
45    MRS OIL NIGERIA PLC
46    NADABO ENERGY LIMITED
47    NASAMAN OIL SERVICES LIMITED
48    NATICEL PETROLEUM LIMTIED
49    NIPCO PLC
50    NORTHWEST PETROLEUM & GAS CO LTD
51    OAKFIELD SYNERGY NETWORK LTD
52    OANDO NIGERIA PLC
53    OBAT OIL & PETROLEUM LIMITED
54    OIL BATH NIGERIA LIMITED
55    ORIGIN OIL & GAS LIMITED
56    PETROL TRADE ENERGY LIMITED
57    PHOENIX OIL COMPANY LIMITED
58    PINNACLE CONTRACTOR LIMITED
59    PINNACLE OIL & GAS LIMITED
60    PRUDENT ENERGY & SERV. LTD
61    RAHAMANIYYA OIL & GAS LIMITED
62    RAINOIL LIMITED
63    ROCKY ENERGY LIMITED
64    RYDEN OIL LIMITED
65    SAHARA ENERGY RESOURCES LIMITED
66    SEA PETROLEUM & GAS COMPANY LTD
67    SHORELINK OIL & GAS LIMITED
68    SIFAX OIL & GAS COMPANY LIMITED
69    SIRIUS ENERGY RESOURCES LIMITED
70    SOMERSET ENERGY SERVICES LIMITED
71    TECHNO OIL LIMITED
72    TONIQUE OIL SERVICES LIMITED
73    TOP OIL & GAS DEVELOPMENT LIMITED
74    VALCORE ENERGY LIMITED
75    VENRO ENERGY LIMITED
76    VIVENDI ENERGY NIGERIA LIMITED
77    XALON PETROLEUM LIMITED
78    ZALEX ENERGY RESOURCES LIMITED
79    ZAMSON GLOBAL RESOURCES LIMITED
TOTAL AMOUNT SETTLED: N259,339,041,657.85
Processing of claims/SDNs
OM&TCs under the subsidy regime, file for claims for reimbursement of the difference between the landing costs for petrol and kerosene and the domestic pump prices.
Thereafter, the Petroleum Products Pricing Regulatory Agency, PPPRA, will verify the documents and send to the Ministry of Finance, who in turn, invites external auditors to counter-check the documents and then forward to the Debt Management Office, DMO.
The DMO, based on the auditors’ recommendations issues the Sovereign Debt Notes, which the marketers take to the Central Bank of Nigeria, CBN for cash validation through their respective banks.
However, if the debits notes cannot be turned into cash, they remain “as good as a tissue paper.”

SURE-P: Fuel price increase generates N71bn in 3 months.

By Omoh Gabriel.
 The three tiers of government in the country earned a total of N71.10 billion from the increase in fuel pump price in January between April and June 2012.
The sum was the amount distributed as the Subsidy Re-Investment and Empowerment Programme, SURE-P, among the three tiers of government and the 13 percent Derivation Fund.

A motorist refueling his car at a black market

While the Federal Government collected N32.59 billion, state governments received N16.53 billion and local governments got N12.74 billion, while N9.24 billion went to the 13 percent Derivation fund.
According to the 2012 second quarter review of the economy by Central Bank of Nigeria, CBN, N56.45 billion was also shared among the three tiers of government as exchange rate gain. As a result, the Federal Government got N15.09 billion; states, N22.58 billion; local governments, N11.64 billion and 13 percent Derivation Fund, N7.34 billion.
NNPC’s refund
The CBN reported that the Nigerian National Petroleum Corporation, NNPC, refunded N15.22 billion to the federation account, which was shared by the sub-national governments and 13 percent Derivation Fund as follows: state governments, N7.48 billion; local governments, N5.76 billion, and 13 percent Derivation Fund, N1.98 billion.
Following this development, the CBN report said: “The total allocation to the three tiers of government in the second quarter of 2012 amounted to N1.739 billion. N71.10 billion was also distributed as the Subsidy Re-Investment and Empowerment Programme, SURE-P, among the three tiers of government and the 13 percent Derivation Fund; Federal Government, N32.59 billion; state governments, N16.53 billion; local governments, N12.74 billion and 13 percent Derivation fund, N9.24 billion.”
The CBN in the report on the economy said: “Available data showed that total federally-collected revenue, during the second quarter of 2012, stood at N2.596 billion, representing an increase of 7.1 and 8.7 per cent above the proportionate budget estimate and the level in the corresponding quarter of 2011, respectively, but a decline of 12.9 per cent below the level in the preceding quarter.
“At N1.981 billion, gross oil receipts, which constituted 76.3 per cent of the total, exceeded the proportionate budget estimate by 19.4 percent, but was lower than the level in the preceding quarter by 16.6 percent.
“The development relative to the preceding quarter was attributed, largely, to the fall in the receipts from crude oil and gas exports as well as domestic crude oil and gas sales owing to the shut down and disruptions caused by maintenance works at various terminals.”
2nd quarter  economy
Explaining further how the economy fared in the second quarter of 2012, CBN said: “Non-oil receipts, at N614.60 billion 23.7 percent of the total, was above the level in the preceding quarter by 1.6 percent, but below the proportionate budget estimate by 19.6 percent. The rise in non-oil revenue relative to the preceding quarter reflected, largely, the increase in Corporate Taxes and the Customs and Excise Duties during the review period.
“As a percentage of projected second quarter 2012 nominal Gross Domestic Product, GDP, oil and non-oil revenue were 19.8 and 6.2 percent, respectively. Of the gross federally-collected revenue during the review quarter, N1,400.57 billion, after accounting for all deductions and transfers, was transferred to the Federation Account for distribution among the three tiers of government and the 13.0 percent Derivation Fund.
“The Federal Government received N659.75 billion, while the states and local governments received N334.63 billion and N257.99 billion, respectively. The balance of N148.20 billion went to the 13.0 percent Derivation Fund for distribution by the oil-producing states. Also, the Federal Government received N26.18 billion from the Value Added Tax, VAT, Pool Account, while the state and local governments received N87.25 billion and N61.08 billion, respectively.
“During the period under review, N21.47 billion was drawn from the Excess Crude Account, ECA, to bridge the short-fall in revenue for the period and was shared as follows: Federal N9.84 billion, states N4.99 billion.
SURE-P earnings
“N71.10 billion was also distributed as the Subsidy Re-Investment and Empowerment Programme, SURE-P, among the three tiers of government and the 13 percent Derivation Fund as follows: Federal Government N32.59 billion, state governments, N16.53 billion; local government, N12.74 billion and 13 percent Derivation Fund, N9.24 billion.
“Furthermore, N56.45 billion was shared as exchange rate gain as follows: Federal Government N15.09 billion, state governments, N22.58 billion; local governments, N11.64 billion and 13 percent Derivation Fund, N7.34 billion.
Sharing NNPC  refund
“In addition, the NNPC Refund was shared by the sub-national governments and 13 percent derivation fund as follows: states government N7.48 billion; local governments, N5.76 billion and 13 percent Derivation Fund, N1.98 billion.
“Thus, the total allocation to the three tiers of government in the second quarter of 2012 amounted to N1,739.31 billion. This was higher than N3.85 billion, while the oil producing states received N2.79 billion. At N851.99 billion, the Federal Government retained revenue for the second quarter of 2012, was lower than both the proportionate budget estimate and receipts in the first quarter of 2012 by 14.3 and 11.9 percent, respectively.
“It was, however, higher than the receipts in the corresponding quarter of 2011 by 17.6 percent. Of this amount, the Federal Government’s share from the Federation Account, VAT Pool Account and FGN Independent Revenue were N659.75 billion, N26.18 billion, and N101.26 billion, respectively, while “Others” accounted for the balance of N64.80 billion.
Expenditure
“Total expenditure for second quarter stood at N1,063.76 billion, indicating a decline of 16.8 percent relative to the level of the quarterly budget estimate.
“It was, however, higher than the level in the preceding quarter by 11.4 percent. The development, relative to the quarterly budget estimate, was attributed to the non-release of capital outlay during the period.
“A breakdown of total expenditure showed that the recurrent component accounted for 72.9 percent, capital component 23.1 percent, while statutory transfers accounted for the balance of 4.0 percent.
“Further breakdown of the recurrent expenditure showed that the non-debt component accounted for 89.3 percent, while debt service payments accounted for the balance of 10.7 percent.”

Mimiko betrayed us, says Tinubu.

Tinubu

Action Congress of Nigeria (ACN) National Leader, Asiwaju Bola Tinubu at the weekend spoke with reporters on national issues in London. He was on his way to the Democratic Party’s Convention in the United States. Excerpts:

On Ondo election
imiko is a traitor. We are going to defeat him without rigging. He has betrayed others in the past. He got into the late Chief Adebayo Adefarati’s executive council in 1999, betrayed him and moved to the Peoples Democratic Pary (PDP). He later betrayed Olusegun Agagu and came back. 
He promised that within 30 days of his declaration when we were fighting the case in the court, he would join Action Congress of Nigeria (ACN) and after being sworn in, he started dilly-dallying. That is his trait. He’s not principled; a person with character would not do that definitely. 
Adebanjo’s stone at ACN 
We don’t know them in ACN and they have tried as much as possible to work against us; it is not new. They were in PAC, they sold the defunct Alliance for Democracy (AD) to former President Olusegun Obasanjo. They came under the Democratic People Alliance (DPA), they failed, they went to bed with Gbenga Daniel in Ogun State, they failed. They are still going to fail. I don’t see what is Afenifere in that.   
Lagos traffic law 
What is anti-people in the law? The law is against those who want to violate the traffic. For instance, if you smoke and the cigarette light drops on you while you are driving, it can lead to an accident. So, why not be patient till you get to where you are going. Why can’t they obey simple law like in any other country. 
The opposition parties who are criticising the law are benefit of ideas. Governance is about ideas. The law is for safety and the government has the responsibility to guarantee the safety of lives primarily, then properties. So, you are saving lives and property. 
A vehicle is an asset 
People should learn to obey simple laws; it is for their own good; it is not by government. If you are not in violation, no one will arrest you. If you are in violation, no court will listen to you. And if you don’t have money to defend yourself, the Office of the Public Defender is there, established by the government for those who don’t have money. We should clap for the government. Everybody wants the easy way out. Nigerians will urinate even in the water they will drink. 
We have to be civilised. Look at how clean this place is. 
The N5, 000 note 
It is an indication of devaluation. It is not his own problem. He is a banker for the entire nation. He keeps an eye on the economy and comes up with policies. The problem that we have is that we are spending what we don’t have. We are not managing our resources very well. If you are losing over $6 billion in oil revenue to theft. If you are losing $6 billion to $10 billion to subsidy theft, and if you’re spending 75 per cent of your budget to service recurrent expenditure and you’re borrowing for no long term activities and development that will sustain the nation on the long term, you get devaluation and you’re seeing the effect of devaluation. 
The economy is on reverse; it’s a yoyo economy. This government is not serious; they don’t know what they are doing. 

The Nation.

CPC seeks full disclosure on MTN airplane promo.

By Franca Ochigbo, Abuja.

The Consumer Protection Council (CPC) has directed MTN Nigeria Communications Limited to make available to consumers adequate information on its recharge and win aircraft promotion, tagged MTN-Ultimate Wonder Campaign Promotion.
In a statement, the Deputy Director, Public Relations, Abiodun Obimuyiwa, said the Council’s directive was handed down to the communication company at a meeting convened by the agency to address the apprehension and concerns of consumers on the promotion. 
Led by its General Manager, Regulatory Affairs, Ms. Oyeronke Oyetunde, CPC said the firm left out some information needed to adequately guide consumers on the promotion.
The CPC said: “MTN left out the market value of the aircraft to be won, the size of the plane, the delivery period of the aircraft to an eventual winner or cash equivalence in local currency for a winner, who may prefer a cash reward for the grand prize.
“In all the existing communications on the promotion, consumers are not properly directed to the site where the terms and conditions applicable to the promotion are published and the fact that the reference to those terms was in small print.
“It directed the communication outfit to reflect and correct all these lapses in its subsequent media interactions and communication, which MTN assured would be done within the next two or three weeks because of the intricacies involved, particularly in the change of its advertisement.
“MTN explained that the promotion was introduced because it wanted to do something different and to start something that would excite its consumers.”

The team pointed out that the grand prize is a four-seater aircraft, worth $400,000 which is equivalent to N72million, though it disclosed that an order was yet to be made because of the possibility of its winner preferring a cash award. 
When questioned on what will be made available if the possible winner prefers the aircraft, the team disclosed that an order would thereafter be made, delivery of which would take six or eight weeks.
Commenting on the outcome of the meeting, the Director General of CPC, Mrs. Ify Umenyi, said the lapses discovered in the promotion underlined her Council’s insistence that all sales promotions must be vetted before going public in order to safeguard the interest of consumers.

Nigeria is 39th largest economy, says Minister.

By Gbenga Omokhunu, Abuja.

• Usman

 

• Vision 20: 2020: Jonathan moves against failure

The Federal Government yesterday said latest indices on the nation’s Gross Domestic Product’s (GDP) performance level indicated that the domestic economy has inched up to the 39th position among the leading economies in the world.
This is with prospects that the ranking would get better if the ongoing Gross Domestic Product rebasing exercise is concluded.
Giving the hint during the inauguration of the Central Working Committee (CWG) on the review of the implementation of the First National Implementation Plan (NIP) for the Vision 20: 2020 in Abuja, the Minister/Deputy Chairman ,  National Planning Commission (NPC), Dr. Shamsuddeen  Usman, said the development showed clearly that the on-going Transformation Agenda of the Federal Government, particularly its three-phased National Implementation Plan components, is achieving the desired results.
He described the work of the Committee as crucial to government’s efforts to reposition the nation’s economy as one of the biggest globally by the year 2020, and therefore assured them of necessary support that would help  accomplish the assignment given them.
“What gets measured is done. By setting a target and measuring the progress that we are making, we are more likely to achieve desired result.  But from the way we are tracking and really pushing, we  have actually climbed to about 39 from the 44 we have been. So you can see we are making progress there in terms of GDP per Capital and we are going to make another big progress when the GDP rebasing figures come out.” 
The 1st NIP which commenced in 2010 is scheduled for completion next year and it provides a strong foundation for implementation of subsequent plans in the next eight years. The 2nd NIP is slated for implementation in 2014-2017 fiscal period.
He said President Goodluck Jonathan has approved that the NPC should champion the effort of developing for Nigeria a National Integrated Infrastructure Master Plan, adding that Jonathan  is concerned that despite a lot of efforts given to infrastructure: “it is unfortunate that its not been done in a coordinated or  integrated manner. 
His words: “President Goodluck Jonathan has also approved that the National Planning Commission (NPC) should lead the effort of developing for Nigeria a National Integrated Infrastructure Master Plan. Right now there are a lot of efforts given to infrastructure. But unfortunately it is not been done in a coordinated or in an integrated manner.
“All the states are involved in the sense that when we were doing this plan we took into account the plans of all the 36 states including the Federal Capital Territory (FCT). 
“I think we are making progress with the Vision 20: 2020 but you see what get measured get done, I always repeat this statement, we are measuring and we brought a professional group of people and it is just government that is involved. 
“We do not want to come out with an assessment that will not involve other sectors  and people will later complain that it was because it is only government. Now we have put together a very technical independent group that will be able to come up with an assessment. 
He said the key elements of the first NIP, which has as its theme, ‘Accelerating Development, Competitiveness and Wealth Creation for All,’ are the overall macroeconomic targets of GDP of $300 billion by 2013; Per Capital Growth of $2,008, up from $1,075, achievement of average GDP growth of 11 per cent and a total projected investment of N32 trillion.
The Committee, chaired by  Moses Akpabosa, has its Terms of Reference as, determining the scope of the first NIP review period; developing and agreeing on template for the review; determining the structure and format for the review of the First NIP; and working closely with MDAs and National Planning Commission with a view to obtaining relevant inputs on the achievements of the Key Performance Indicators and reviewing the macroeconomic framework and other sectoral targets for the Plan period.
Others are, producing a detailed Report of the review, highlighting key gaps and challenges at macro and sectoral levels, and propose necessary solutions; arranging stakeholders’ validation of the Report; and articulating the preparatory activities for production of 2nd NIP 2014-2017, amongst others.

2015: How PDP plans to weaken Jega.

BY SONI DANIEL
ABUJA — Despite restriction on open campaign for the 2015 polls by President Goodluck Jonathan, it was revealed yesterday how forces close to the administration plan to reduce the powers of the Chairman of Independent National Electoral Commission, INEC, Prof. Attahiru Jega.
According to Vanguard’s findings, powerful elements within the government had perfected a plan to replace the current secretary of the commission, Alhaji Abdullahi Kaugama, with a trusted ally and confer him with enormous operational powers that would make him more powerful than Jega prior to the 2015 elections.

Professor Attahiru Jega

The hawks, said to be headed by top officials of the administration, are said to be relying on the tradition of fielding INEC secretary’s position from outside the commission by previous administrations.
Incidentally, Kaugama, who is the first secretary of the commission to be appointed from within the staff pool, was named in 2008 and he is due for retirement next February.
It was gathered that some influential members of the ruling party had become increasingly uncomfortable with what a source described as ‘Jega’s overbearing powers’ , which he could use to scuttle the political ambitions of their supporters in 2015, if unchecked.
The source hinted that the protagonists of the plot, who had fallen out of favour with Jega had suggested to the Presidency that he (Jega) could not be relied upon to give them victory in 2015 and should, therefore, be stripped of some of his powers. They asserted that some of these should be given to a trusted person that could be manipulated.
“It is as a result of a high-wired political agenda that you hear the Attorney General and Minister of Justice, Mohammed Adoke, saying openly that Jega is not the CEO of INEC and that the man should not parade himself as one.
“What they want to do is to take the operational powers from Jega and confer same on one of their own, likely to be picked from outside the INEC anytime from now so as to protect their narrow political interests.
“These people are just looking for ways and means to protect their interests at all costs by keeping someone as their ‘operational man’ at INEC to do their biddings.
“But if they say that Jega is not the CEO of the commission, let them go to the law establishing the commission and find out if the man is not a full time chairman and the chief electoral officer,” the source said.
Attempts to confirm the receipt of the AGF’s letter by INEC were unsuccessful, as the Chief Press Secretary to the INEC Chairman, Mr. Kayode Idowu, did not pick his calls and did not respond to text messages sent to him.

Jega overbearing power

One of the sms sent to the CPS at 2.05pm read, “Please confirm if the letter published in the media today about Jega not being the CEO of INEC, purportedly written by Adoke had been received.” There was no reply to the sms at the time of going to the press.
Jega, a former Bayero University Kano Vice Chancellor, was tapped by President Goodluck Jonathan on June 8, 2010, to head the Independent National Electoral Commission, INEC, as part of his effort to reposition the electoral body and ensure credible elections in the country.
But Jega might have played into the hands of his adversaries by sending an innocuous letter he wrote on June 19, 2012, to the AGF to clarify who was the accounting officer of the body, as part of his efforts to ensure effective service delivery.
But in replying to the letter, Adoke in a response dated July 26, 2012, bluntly declared that Jega was not the accounting officer of the body and quoted several sections of the law to buttress his position, leaving the chairman guessing on what next to do.
Part of Adoke’s reply read, “I have examined relevant provisions of the law particularly, the Constitution of the Federal Republic of Nigeria, 1999, the Electoral Act, the Public Procurement Act and extant Financial Regulations in order to determine whether the law has expressly provided for the position of either the ‘Chief Executive Officer’ or ‘Accounting Officer’ of the Independent National Electoral Commission, INEC.
“Regrettably, it would appear that no such terminology was used in the statutes examined. Item 14(1)(a) of Part 1 to the Third  Schedule of the Constitution only provides that the Chairman shall be the Chief  Electoral Commissioner. The provision does not state that the ‘Chief Electoral Commissioner’ is the ‘Chief Executive Officer.
“I have similarly examined the functions and powers of the Commission as provided for in item 15 of Part 1 of the Third Schedule to the Constitution and sections 2, 3, 4 and 5 of the Electoral Act and wish to observe that these are functions and powers that can only be exercised by the Commission and not by the Chairman or any individual Commissioner except as may be delegated by the Commission under Section 152 of the Electoral Act or item 15(h) of Part 1 to the Third Schedule to the Constitution.”
“Consequently, in the absence of any clear donation of the powers of a Chief Executive Officer or Accounting Officer by the relevant statutes, and in the absence of any evidence to indicate that these functions and powers of the Commission have been delegated to the Chairman, I am unable to come to the reasoned conclusion that the law contemplates that the Chairman of INEC shall be the Chief Executive Officer or Accounting Officer of the Commission,” Adoke stated.
But the Attorney General of the Federation and Minister of Justice, Mr. Mohammed Adoke, yesterday distanced himself from the development in INEC, saying that he had no hand in whatever was going on there.
Adoke, a Senior Advocate of Nigeria, who spoke through his media aide, Mr. Ambrose Momoh, said INEC was an independent body constitutionally-empowered to carry out its duties without reference to his office and that he had nothing to do with the agency.
He declared: “I do not have any personal interest in what INEC is doing and that is the truth.”
The situation in the commission will become clearer in the next couple of weeks as the secretary prepares to bow out. Incidentally, Kaugama is the first INEC secretary to be picked from within the commission. All others were nominated from outside by the government, which now appears poised to do same as soon as the current occupier of the office leaves.

Pipeline closure: Fuel shortage looms in Lagos, others.

 by Stanley Opara Everest Amaefule and Ifeanyi Onuba.

Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke.

LAGOS, Ibadan, Ilorin and  their environs risk potential fuel crisis with the closure of system 2B, the Nigerian National Petroleum Corporation’s supply pipeline from Lagos to Mosimi Depot in Ogun State.

The closure was  due to the pipeline explosion at a point around Arepo, off the Lagos-Ibadan Expressway.

“We are likely to have an upsurge of demand in Lagos depots due to the closure of system 2B, which is an NNPC pipeline at Shagamu. We didnt have enough products in the country before now, and this closure will worsen the situation,” a source at the Nigerian Independent Petroleum Company, Plc said.

This development coincides with a warning by oil marketers, who as part of their lingering confrontation with the Federal Government over subsidy claims, on Monday advised  Nigerians to be prepared for a nationwide fuel scarcity.

The Secretary General, Jetties and Petroleum Tank Farm Owners Association, Mr. Enoch Kanawa, in a telephone interview with one of our correspondents on Monday, said the oil marketers had no money to continue to  import .

He  said  the NNPC alone  cannot  satisfy  the demand by Nigerians.

Kanawa said, “A lot of our money is still outstanding. Marketers are being owed huge sums of money. Three weeks ago when we  were crying about all these issues, they said we are blackmailing the Federal Government and we are shielding marketers from facing prosecution.

“Currently,  none of our members is  importing because there are still payment issues outstanding. It is the NNPC that is holding the market and they don’t have the network to satisfy the demands of Nigerians.”

He said the oil marketers were being owed about N200b in for fuel subsidy.

But the Minister of Finance, Dr. Ngozi Okonjo-Iweala, faulted him, saying  the Federal Government had continued to pay marketers whose claims have been duly verified.

 The minister, who spoke through her Senior Special Assistant, Mr. Paul Nwabuikwu, said  government was committed to encouraging  honest and professional private sector operators in the subsidy regime.

Okonjo-Iweala said, “A total of N259, 339,041,657.85” has been paid as fuel subsidy claims in 2011-2012.”

 The NNPC spokesperson, Mr. Fidel Pepple, who also confirmed the closure of the System 2B product pipeline to our correspondent on the telephone on Monday, assured  that the development  would not adversely affect the availability of petroleum products.

 “The closure of this line will not affect the availability of products. It will only increase demand pressure on products in Lagos. Most trucks will have to come to Lagos to get products. This will, therefore, not affect supply as the  Petroleum Products Marketing Company has enough to go round,” he explained.

Pepple told our correspondent that the PPMC had created alternative channels to address the challenge resulting from the closure of the System 2B line.

“It is using Apapa and Satellite depots.  As far as the NNPC is concerned, the PPMC has enough products for the country,” he said.

He told The PUNCH that as at Thursday last week, the NNPC had 32 -day sufficiency of petrol.

“Between Sunday and Monday (yesterday), a vessel had finished discharging product, and another is currently discharging,” he added.

Commenting on the inability of some marketers to get enough supply of product, Pepple said it could be attributed to operational problems or some hitches encountered in the course of lifting products.

Oil marketers in the country, have however, said that they might not resume petrol importation anytime soon.

They said that given the current situation, the NNPC might continue product importation solely.

The marketers, however, maintained that with the NNPC solely importing petrol, the country remained prone to product shortage and eventual scarcity.

A source at NIPCO told our correspondent that petrol prices at the depot level were currently between N92.50 to N94 as against N89.60 to N90.60. This rise in price, it was learnt, was a function of mounting pressure on supply limits (supply deficiencies).

 “The system 2B pipeline has been closed. When things like this happen, government comes up with a directive that people who hitherto get supply from system 2B be served from Lagos. This will definitely increase  pressure on the facilities in Lagos,” the source added.

The development came just as fuel queues resurfaced in Abuja on Monday.

While some of the fuel stations run out of stock, others that sold  fuel were besieged by motorists.

Kanawa said, “The fuel queue that is resurfacing now will take a long time because we have run out of stock in our depots. We are being owed for products delivered. So where do they want us to see money to import because the banks are not borrowing?

 “The banks need an assurance that when we import, the claims would be paid to enable us pay back.”

He said that the major marketers such as MRS , Capital Oil, Oando, Conoil and Forte Oil that would have assisted the NNPC to distribute petroleum products have issues with the government.